Electricity Prices Go Up 15% from July

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Electricity Prices Go Up 15% from July

From the beginning of July, the price of electricity for household consumption will increase nation-wide by an average of 14.96 per cent, the chairman of the State Committee for Energy and Water Regulation, Konstantin Shoushoulov, said Thursday. The quarterly reading of electricity meters remains.

The average increase will be 0.01656 leva/kWh. It is highest for users of E.ON which get an increase by 0.01894 leva/kWh (to 0.18510 leva/kWh peak and 0.11144 off-peak). The users of CEZ will pay 0.01571 leva more ( 0.17765 leva/kWh peak and 0.11587 leva/kWh off-peak) and of EVN 0.01593 leva more(0.18185 leva/kWH peak and 0.10644 leva/kWh off-peak).

It is the first time the price of electricity varies by region, depending on which is the power distribution company.

The new prices will be valid for a year from now.

The regulator initially spoke of a 18 per cent average increase but said Thursday that it has been able to reduce it by some 4 per centage points through cuts in the costs of the companies down the electricity chain. Shoushoulov said they have refused to approve spendings by the companies, which are not immediately related to improving power supply. Also, the profit margin has been reduced to 12 per cent from 16 per cent.

Shoushoulov presented a new service that CEZ are expected to launch about a month from now: prepaid electricity supply. It works through an electricity meter with pre-paid magnetic cards for a set amount of electricity. Such meters will be installed only with the users' consent.

The price of gas goes up by 5.6 per cent and the price ceiling for end-users is 434.80 leva/1,000 cu m pre-VAT. The price is valid for the third quarter of 2008.

The average increase for central heating provided by the heating utilities is 12.92 per cent to an average price of 68.93 leva/MWh. Beginning next month, Sofianites will pay 13.41 per cent more (68.33 leva). The increase is most significant for the Northeastern towns of Razgrad and Shoumen, 20.20 and 20.06 per cent, respectively. The most expensive heating utility service is in Pravets, 108.22 leva (after a 4.01 per cent increase). The increase is least significant in Varna (1.2 per cent). Veliko Turnovo gets a decrease by 1.05 per cent.

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